Nationwide: UK Property Market Is Cooling After Summer Peak

Nationwide has released its figures this week, which show that the UK housing market is slowing down after it peaked in the summer. But will this cool down be a dramatic one?

According to Nationwide, the answer is “no”, the Telegraph reports. The housing market is still supported by a strong labour market, it says, as well as low interest rates and a demand for property.

In a statement, Nationwide has said that the housing market moderated throughout September, with a slowdown in both demand and property price growth. Yet, with low interest rates continuing and a sturdy labour market, “underlying demand is expected to remain robust”.

Nationwide’s own house price index, which is based around its mortgage figures, has revealed that yearly growth fell slightly to 9% in October.

The building society also added that it did not expect interest rates to increase before April of next year. “With few signs that inflationary pressures are building, and renewed concerns about a slowdown in the eurozone, we do not expect the Bank of England base rate to rise before the start of our next financial year, with future rises being gradual in nature and settling below pre-crisis levels,” it said.

Nationwide also reported that its pre-tax profit went up to £598 million for the six months to September, from £281 million for the same period a year before. CEO Graham Beale has said that the strong performance is down to Nationwide’s “attractive range of products designed to be transparent, fair and good value”.